Call for review of RFID's privacy impact

Privacy advocates have called for the US Federal Trade Commission or other government agencies to initiate a comprehensive assessment of the potential effects of RFID (radio frequency identification) technology.

The FTC or other agencies could conduct an "impartial" assessment of RFID and its potential effects on privacy, said Beth Givens, director of the Privacy Rights Clearinghouse.

Some advocates who trumpeted RFID's potential to reduce supply-chain costs called for a campaign to educate the public on the potential positive uses of RFID, but Givens said a public campaign needs to include potential privacy concerns.

"It's very important to distinguish between a true consumer education campaign and a public relations campaign," she said.

RFID uses small computer chips and antennas that are integrated into a paper or plastic label. Those chips can then be read by an electronic scanner from distances upward of 25ft.

Wal-Mart Stores plans to phase in use of RFID, with major suppliers of its north Texas stores required to use RFID chips on pallets and cases by January 2005. The US Department of Defense requires suppliers to use RFID tags by early 2005.

Even though most panelists at the FTC workshop said widespread item-level RFID tagging, on products such as clothing and electronics, is years away, it is not too early to start thinking about the privacy implications.

The day-long RFID workshop in Washington, DC, included panel discussions on existing and anticipated uses of RFID chips and on best practices for using the information stored on RFID chips.

RFID will allow retailers to track products in their supply chains, making for a more efficient, and cheaper, movement of goods, said Dan White, technical evangelist for RFID in the New Technologies Retail Solutions Division of NCR.

A major problem at retail stores is products being misplaced on the shelves, but a more efficient supply chain will eventually result in lower prices to consumers, White said.

Eventually, consumers will be able to buy RFID chips and readers, and find things that are easily lost, including car keys and TV remote controls, he added.

Most consumers, however, do not know what RFID is, said John Parkinson, vice-president and chief technologist at Capgemini.

In an internet survey released by Capgemini and the National Retail Federation, 77 of respondents said they were unfamiliar with RFID technology. A majority of respondents identified several potential benefits, including reduced costs to consumers, faster recovery of stolen goods, and faster product recalls.

But a majority of respondents also expressed concerns about how consumer data would be used, whether they would be subjected to more direct marketing, and whether consumers could be tracked using RFID chips.

Parkinson, chairman of the Information Technology Association of America's RFID Standards Task Group, recommended that retailers and other RFID users adopt guidelines for the appropriate use of RFID and begin educating the public about the potential uses for RFID.

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